Company Update (NYSE:BAC): Bank of America Corp Increases Prime Lending Rate
Bank of America Corp (NYSE:BAC
) announced that it is increasing its prime lending rate to 3.75 percent from 3.50 percent, effective immediately.
This follows the news that the US Federal Reserve has raised its key interest rate by 0.25%, for the first time in a year, and only the second time since the 2008 financial crisis.
Shares of Bank of America closed today at $22.67, up $0.06 or 0.27%. BAC has a 1-year high of $23.30 and a 1-year low of $10.99. The stock’s 50-day moving average is $19.54 and its 200-day moving average is $16.03.
On the ratings front, BAC stock has been the subject of a number of recent research reports. In a report issued on December 6, CLSA analyst Mike Mayo maintained a Buy rating on BAC, with a price target of $25, which implies an upside of 12% from current levels. Separately, on December 2, Jefferies’ Jason Kupferberg reiterated a Buy rating on the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mike Mayo and Jason Kupferberg have a yearly average return of 5.3% and 10.0% respectively. Mayo has a success rate of 63% and is ranked #1168 out of 4285 analysts, while Kupferberg has a success rate of 69% and is ranked #175.
Overall, 7 research analysts have assigned a Hold rating and 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $19.20 which is -13.9% under where the stock opened today.